New TSB bank switching deal launches with extra perks – should you move banks?

TSB is offering a host of perks alongside its new bank switching bonus. Are they worth it to move to TSB?

TSB bank branch
(Image credit: Getty Images/Peter Dazeley)

The bank switching market is heating up. TSB is the fifth bank trying to tempt customers to switch accounts by providing a generous cash incentive. TSB’s new deal follows Santander’s £175 switching offer and Nationwide and Lloyds’ new deals that launched in May.

TSB’s new £160 switching bonus offer is less attractive than the £185 deal that it offered in January, but this time the bank is offering a reward plus highlighting the perks that come with its current accounts. 

As always, the key is to check the small print and be aware of any hoops you’ll need to jump through, before deciding if the deal is worth it. Switching banks should be more about whether the bank meets your needs than the incentives on offer. Packaged bank accounts – where you pay a monthly fee in return for a range of extra perks – have become more popular so it’s not surprising to see them offered as part of bank switching deals.

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So, what is TSB offering, how do you make the switch and how does it compare to the rest of the market?

TSB bank switching offer explained

New customers who switch to TSB’s Spend & Save account (no fee) or its Spend & Save Plus account (£3 monthly fee) can get up to £160, plus a free reward. 

TSB’s deal is broken down into three legs. Here’s how to complete the full switch. 

To get £100

You will need to complete the following steps before 5 July to receive £100 from TSB:  

  • Switch to TSB using the bank’s switch service 
  • Make at least five debit card payments using your TSB account
  • Log into the TSB mobile banking app at least once 

The £100 bonus will be paid to you between 17 July and 31 July, provided you manage to complete the steps above in time. 

To get an extra £60

To get a further £60, TSB is asking customers to take one more step. You will need to make at least 20 debit card payments, each month, for six months. 

You must be eligible for the £100 bonus in order to be eligible for the £60 free cash. 

Note: both of TSB’s eligible current accounts (Spend & Save or Spend & Save Plus) offer £5 cashback a month when you make 20 payments a month, anyway. But, as part of its switch deal, the bank is doubling that cashback, to £10. 

An extra reward from TSB 

TSB is also adding a shiny reward as well as its cash bonus. You can pick one reward from the three on offer: 

  • A night away for two people with a choice of 90 to 100 hotels (including the Mercure, Village Hotels, Starboard and Crest hotels).
  • A NOW Entertainment membership for six months for the Entertainment bundle. 
  • Two Odeon cinema tickets every month for three months 

To get your hands on one of the rewards, you’ll need to be eligible for the £100 bonus and make a minimum of 20 direct debit payments in December 2024. Once you qualify, you can pick your reward in January 2025. 

To be eligible for the reward you’ll need to keep your TSB account open until the end of January 2025. 

Note: You do not qualify for the TSB cash bonus and reward if you have taken advantage of a cash incentive with the bank since 1 October 2022. 

What perks come with TSB's current accounts? 

TSB’s current accounts included in the switch deal are packaged bank accounts, which means they come with a host of perks. 

TSB’s Spend & Save account current account is free and you get access to My TSB rewards. This includes discounts on takeaways, MOT, holidays and cinema tickets. Plus, depending on your credit history, you can get up to £2,000 in overdraft. You also get access to TSB’s savings pots, returning 2.92% AER. You can save in a maximum of five pots, and you can save up to £5,000 in each. 

The Spend & Save Plus account also qualifies in the switch deal but has a £3 monthly fee (£36 annually). This comes with everything you get with the Spend & Save account, plus fee-free spending worldwide with TSB’s debit card. Also, as part of the £2,000 overdraft perk, you can get the first £100 interest-free (depending on your credit history). 

How does TSB compare to the rest of the market? 

TSB does not offer the best cash bonus on the market. Nationwide is top, with £200, but that’s only available to existing customers. Santander, Lloyds Bank and Santander all offer a £175 switching bonus which is more than TSB. But which offers the most attractive overall package? 

If you’re on the hunt for a current account without a monthly fee, you have the choice of TSB’s no-fee Spend & Save account and First Direct’s 1st Account. 

While the TSB account comes with £10 cashback per month (if you qualify), First Direct offers fee-free spending abroad and a 7% regular saver – one of the best savings accounts on the market. If an overdraft is one of the main features you are looking for, TSB is offering a £2,00 overdraft. But, First Direct is giving customers a £250 interest-free overdraft. With both banks, your eligibility depends on your credit history. 

If you’re willing to pay a little a month, these are the current accounts costing £3 a month within the switch deal market:

Here’s how they compare. 

Swipe to scroll horizontally
Header Cell - Column 0 TSB Spend and Save PlusSantander EdgeClub Lloyds
Savings account2.92% on TSB Savings Pots7% Santander Edge saver6.25% regular saver
Fee-free spending abroadYesYesNo
Lifestyle perksWith My TSB Rewards, get discounts on holidays, cinema and takeaways. Perks with Santander Boosts. Includes discounts on eating out and holidays. Choose one: 12-month Disney Plus subscription (with ads), cinema tickets or annual magazine subscription.
Cashback£10 cashback a month for six months (if you qualify). 1% cashback on travel, supermarket shops and selected household bills (on up to £10 a month). Up to 15% cashback at selected retailers. Up to 3% monthly interest credit on up to £5,000.
Switch bonus after annual fee £124 (based on a £160 cash bonus)£139£139

There is no ‘best’ account to switch to, as it depends on what you need from a current account.  

  • If you’re looking for the top savings rates with your current account, your choice is between Santander and Lloyds – but it’s worth comparing the caveats with each account. For example, on the Santander Edge saver, interest is only paid on balances up to £4,000. 
  • If your priority is fee-free spending abroad, again it’s between Santander and Lloyds. First Direct, which charges no monthly account fee, is also in contention. 
  • For cashback perks, the Lloyds account seems to be the most attractive: with up to 15%, interest on your current account and no cut-off date. Whereas the TSB deal gets you just £10 cashback per month, and it is only for six months. 

To compare the full range of deals and offers, see our guide to banks offering the best switching deals. 

Vaishali Varu
Staff Writer

Vaishali has a background in personal finance and a passion for helping people manage their finances. As a staff writer for MoneyWeek, Vaishali covers the latest news, trends and insights on property, savings and ISAs.

She also has bylines for the U.S. personal finance site and Ideal Home, GoodTo, inews, The Week and the Leicester Mercury

Before joining MoneyWeek, Vaishali worked in marketing and copywriting for small businesses. Away from her desk, Vaishali likes to travel, socialise and cook homely favourites